Ipso Facto
Literal meaning: “By the fact itself.”
What does the Latin term "Ipso Facto" mean in law?
Ipso facto indicates that a particular consequence follows automatically from a given fact or state of affairs, without the need for further action or judicial determination. In contract law, an ipso facto clause is a provision that triggers termination or modification of the contract upon the occurrence of a specified event, such as a party's insolvency or bankruptcy filing. Under the Bankruptcy Code (11 U.S.C. § 365), ipso facto clauses in executory contracts are generally unenforceable against the debtor, meaning that a contract cannot be terminated solely because the counterparty filed for bankruptcy.
Source: General · Legal Latin
Legal Definition
Ipso facto indicates that a particular consequence follows automatically from a given fact or state of affairs, without the need for further action or judicial determination. In contract law, an ipso facto clause is a provision that triggers termination or modification of the contract upon the occurrence of a specified event, such as a party's insolvency or bankruptcy filing. Under the Bankruptcy Code (11 U.S.C. § 365), ipso facto clauses in executory contracts are generally unenforceable against the debtor, meaning that a contract cannot be terminated solely because the counterparty filed for bankruptcy.
How It's Used
Ipso facto is used in legal writing to express that something occurs as an automatic and inherent consequence of a particular fact. In bankruptcy law, it has a specific technical meaning relating to clauses triggered by insolvency. In general usage, it means 'by that very fact.'
Example Sentences
The breach of the confidentiality provision ipso facto voided the entire agreement under the contract's termination clause.
Filing for bankruptcy does not ipso facto terminate an executory contract because ipso facto clauses are unenforceable under the Bankruptcy Code.
The statute provides that conviction of a felony ipso facto disqualifies a person from holding public office.